CFCG - First Report on the Movement of Croatian Franchise Market

The food and beverage, services, retail, education, and healthcare sectors show great diversity, providing entrepreneurs with a wide range of business opportunities. Increased interest from private equity funds and other investors in investing in the franchise industry further stimulates the growth of this sector. Global trends point to growth in the fast food, healthcare and fitness, home services, education, and technological and digital services industries. Given the stability of revenue, scalability, and opportunities for diversification, the franchise industry is expected to continue to attract significant investment in the future.

Based on existing data, a new franchise system can expect different levels of growth, depending on the industry and maturity of the brand. Typically, we see growth of 1-3 franchises in the first year and 2-5 franchises in the second year of franchising. Franchises that have already achieved growth in international markets, such as Fish Delish and FastReview, can provide insight into potential growth opportunities in the future. Entry into foreign markets usually occurs in the second or third year of franchise operations. As the market continues to evolve, it will be crucial for franchises to adapt to changing consumer needs and trends in order to remain competitive and ensure sustainable growth, as exemplified by the Croatian brand Friendly Fire, which is successfully franchising within the emerging e-sports industry. Friendly Fire plans to have a total of 14 locations within the next 12 months, some of which are already open in Bosnia and Austria, and a Master Franchise agreement has been signed for Mexico. There are also inquiries emerging from domestic digital concepts that are also considering scaling their business through the franchise model, which could open up a whole new segment of so-called Digital Franchises, combining the IT industry with franchising.

For more information you can download the CFCG Outlook document.